Food and beverages company Strauss today reported a positive trend in its results for the first quarter, although its revenue dipped 3% to NIS 2.1 billion, mainly due to exchange rates effects and lower coffee prices in Brazil. Strauss improved its gross and operating profit.
Strauss Group Ltd., controlled by the Strauss family, reduced its tax expense, which helped the group boost its first quarter net profit by 17% to NIS 172 million.
In its core coffee business, Strauss suffered from the weakness of the Brazilian real against the shekel; its quarterly revenue from this business slowed 9% to NIS 894 million, thereby dragging down the company's gross and operating profit, although the ratio of profit to sales improved.
In the local market, where Strauss is the second largest food company, with a 12.2% market share according to the figures reported by the company, its first quarter revenue grew 1.5% to NIS 877 million, and its operating profit was up 2% to NIS 112 million.
Humus sales in the US stood out positively among Strauss's spheres of activity through Sabra, an equal partnership between Strauss and Pepsico. Revenue in this segment rose 6% to NIS 341 million and operating profit jumped 91% to NIS 54 million, after two years in which Sabra suffered from the negative effects of a recall of some of its products.
The trend in Strauss's share was positive today, and the share price has now risen 15% this year to a peak, giving a current market cap of NIS 11 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 20, 2019
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